- AUD/NZD forms 'Inverted Head & Shoulders' pattern on daily charts.
- The pair has broken major 200-DMA resistance at 1.0710, bias remains higher.
- Technicals support upside in the pair, Stochs and RSI are biased higher.
- Breakout above neckline at 1.0770 could see gains upto 1.0920.
- On the flipside, rejection at neckline could drag the pair to 1.0590 levels.
- Drop in RBA November rate cut bets following the release of the upbeat inflation data boosts Aussie.
- Major support levels - 1.0710 (200-DMA), 1.07, 1.0632 (20-DMA)
- Major resistance levels - 1.0770 (neckline), 1.08 (May 17 high), 1.0875 (May 5 high), 1.0921 (May 10 high)
Recommendation: Good to go long on breakout above neckline at 1.0770, SL: 1.0710, TP: 1.08/ 1.0875/1.09
